Microsoft to change its revenue reporting categories for next fiscal quarter

Microsoft is making some changes in how it reports its financial numbers, starting with its next fiscal quarter that begins on October 1. Instead of two categories ("Devices and Consumer" and "Commercial") Microsoft will now break down its report in three categories: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Microsoft says it is making these changes "to reflect the company's strategy and ambitions to build best-in-class platforms and productivity services for a mobile-first, cloud-first world." Here's what each financial segment will cover:

  • Productivity and Business Processes: It will include Microsoft's consumer and business Office and Office 365 divisions, along with its Dynamics and Dynamics CRM Online businesses
  • Intelligent Cloud: This category will show numbers from Microsoft's many server-based businesses, including Windows Server, SQL Server, System Center, Azure, and Enterprise Services.
  • More Personal Computing: This segment will be the place Microsoft will show revenue from its Windows business, along with its hardware devices like Surface and Lumia smartphones. It will also include the Xbox division, and its Bing search business.

Microsoft plans to report its results, with these new segments, for its fiscal year 2016 first quarter on October 22.

Source: Microsoft

John Callaham